UPDATE:Obama Administration To Decide On Oil Moratorium In A Few Days

1st Jul 2010 22:12

(Updates with comments from Thad Allen and background.) By Jared A. Favole Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--White House Press Secretary Robert Gibbs on Thursday said that in a few days the government would make a decision on how to move forward with a moratorium on deepwater-drilling imposed after a disastrous BP PLC (BP) oil spill. Gibbs, speaking at a daily briefing with reporters, said the decision will come from the Department of Interior. He didn't hint at what the decision would be. The Obama administration in May had ordered a six-month ban on deepwater drilling, a move that caused a swift backlash from the oil industry and states along the Gulf that rely on the sector. Interior Secretary Ken Salazar has said the administration is considering issuing a new, scaled-back moratorium that would replace a moratorium that was struck down last week by a federal judge. The Justice Department has appealed the decision, asking a court to allow the ban to remain in place during a legal challenge. Executives from an array of oil companies met with Salazar earlier in the week to push for lifting the ban. The ban was imposed to allow a presidential commission to study offshore drilling to ensure it could be done safely. The administration reiterated that clean-up efforts along the coast are continuing. National Incident Commander Admiral Thad Allen said Hurricane Alex has "significantly hampered" moves to skim oil near the coast. -By Jared A. Favole, Dow Jones Newswires; 202.862.9256; [email protected] (END) Dow Jones Newswires July 01, 2010 17:12 ET (21:12 GMT)